FBI | Husband and Wife Indicted in Mortgage Fraud Scheme, Face a Maximum Penalty of 30 Years in Prison for Lying about Employment, Salary and Residency

Husband and Wife Indicted in Mortgage Fraud Scheme

BUFFALO, NY—U.S. Attorney William J. Hochul, Jr. announced today that Timothy McCabe, 47, and Theresa Morales, 48, both of Hypoluxo, Florida, were indicted by a federal grand jury for bank fraud. The charge carries a maximum penalty of 30 years in prison, a $1,000,000 fine, or both.

Assistant U.S. Attorneys Maura K. O’Donnell and Kathleen A. Lynch, who are handling the case, stated that according to the indictment, the defendants submitted a fraudulent loan application to a financial institution, JPMorgan Chase Bank, to obtain a $560,000 mortgage on a property in Lewiston, New York. The defendants, who are husband and wife, provided false information in the loan application as to employment, salary, and residency. The defendants conduct resulted in foreclosure on the property.

This law enforcement action is part of President Barack Obama’s Financial Fraud Enforcement Task Force. President Obama established the interagency Financial Fraud Enforcement Task Force to wage an aggressive, coordinated, and proactive effort to investigate and prosecute financial crimes. The task force includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general, and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources. The task force is working to improve efforts across the federal executive branch and with state and local partners to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets, and recover proceeds for victims of financial crimes.

The indictment is the result of an investigation by the Mortgage Fraud Task Force of WNY which includes agents and personnel from the United States Secret Service, under the direction of Special Agent in Charge Tracy Gast; the Federal Bureau of Investigation, under the direction of Special Agent in Charge Christopher M. Piehota; the U.S. Postal Inspection Service, under the direction of Inspector in Charge Robert Bethel; the Housing and Urban Development Office of Inspector General, under the direction of Cary Rubenstein, Special Agent in Charge, New York Region; and the Internal Revenue Service, under the direction of Acting Special Agent in Charge Toni Weirauch. The Mortgage Fraud Task Force of WNY is led by the U.S. Attorney’s Office and also includes Veterans Affairs Office of Inspector General and the U.S. Bankruptcy Trustee.

SOURCE: http://www.fbi.gov

Great job fellas…

~

4closureFraud.org

Comments
20 Responses to “FBI | Husband and Wife Indicted in Mortgage Fraud Scheme, Face a Maximum Penalty of 30 Years in Prison for Lying about Employment, Salary and Residency”
  1. Sailor Jo says:

    Law enforcement in the US is a joke. Kill someone and get away with it or serve a short sentence. Rob millions, and get away with it, may be even get a bonus. GM defrauded thousands of workers who will not get the promised pensions. That was not an act of god, but fraudulent management. They paid dividends from money that should have been put into the pension funds.

    The couple did not do much damage in the big picture. The main damage is to themselves. The bank will recover much of the mortgage. I believe if that couple will get 6 months, that should do it. Who will have any benefit from a longer sentence? The judges do not pay for prison but the tax payer. Do the judges know that what they sentence the tax payer with?

    The US legal system is bloated like almost everything is bloated, from the medical system to administration in counties, towns, cities, and so on. The country needs an overhaul of gigantic proportions.

  2. Nancy says:

    I totally agree with Joi. I do not condone what that couple did, however, with all the bank Fraud that has gone on for HOW LONG! … and everyone in power ignors, turn their heads, justifies and allows how many American citizens’ lives to be ruined! Where is the F. B. I. with all of them? No, let them give a 30 year prison sentence to this couple, ONLY! Did I miss something here. What message are they sending to all of us?

    Ya know something? One of these days there will be the FROSTING ON THE CAKE and we Americans from the land of the FREE are going to rebel….then look out…Pay back is a BITCH!

  3. Westcoastliberal says:

    The government will never prosecute the real criminals which are the Banksters. Why? Because that’s where the money is for the politicians. Plain and simple.

  4. Bren says:

    The FBI should be prosecuting the Banksters for their mortgage fraud.

  5. chitown2020 says:

    Clearly they are still trying to reinforce “the deadbeats who bought homes they could not afford” theory. The same old BIG LIE that WE THE PEOPLE caused this mess. It was the banks job to verify the apps. The banks didn’t care because they saw dollar signs with every signature they collected. They oversold investments in anything and everything imaginable, even the credit apps. They had a party with our electronic signatures up on Wall Street. The so called exotic derivatives Wall Street created out of thin air. Those derivatives created massive wealth for the financiers and they handed all of US their unsustainable debt. Some estimates are as high as $1.2 quadrillion in derivatives fraud debt was created by these scammers.

  6. Laura says:

    Big fish eat little fish.

  7. D Spriggs says:

    Loan mods are a scam, just as short sales are. The banksters (which are the real criminals) just need your signature, they have clouded the titles. You could pay for 20 years, and never get a release of lien. So many homeowners believe a loan mod will fix everything, but really the day you sign is the time to start packing.
    The only way is to go to court. Also, these are unsecurtized notes, check it out. Sending this couple to prison is attempt by banks to make the terrible homeowners the bad guy.

  8. lies is all they tell says:

    so obama win the elction 4 years ago. announces to ask your bank for a hamp loan so we do and now i am in foreclosure? WTF. Wells fargo is scamming out of my home and thats OK.??? they can tell perverse lies to homeowners like telling us not to pay our mortgage or pay tese 3 trial payments and you will have a permanent mod. Wat i know about civil law when you give wrong information and this causes harm, it false under inducement into default or causes the contract to be broken. Wy are people walking away from there homes and not figting. Why is obama not punishing htese banks for giving us false info and trying to steal our homes?? why doesnt he ask for the tarp money back and then re fi our mortgages to property values. heads up in tampa florida. the home i bought for 260k in 2006 is now appraised value 105k, then the citizens insurance scam, leave all property values at 2007 . i am paying insurance for 180k. is it worth paying a appraiser 300k to re assess my house?? florida is so corrput. I pretty much know that if that hurricane thats out there now comes herre to tampa or anywhere else in florida
    citizens will go to court to pay assessed value not what we are paying iin insurance. WTF people. we all need to leave this place.

  9. Bobbi Swann says:

    @ Michael on this website: Since the posting is not clear on just what the fraud surrounds and nothing can be found on the first release of this news by the US Attorney in NY, can you please provide the source? It would be interesting to know just what type of “program” this application was submitted as obviously it was approved by the lender and funded. Knowing well enough that there were crimminals in this type of activity in Florida during the “boom” years I still don’t believe everything I hear and read, especially when it comes from an unverified source. If this loan was a “NINA” or “SISA” it would be nearly impossible to prove fraud and the lenders knew so.

  10. Jason Werner says:

    It’s nice the feds are going after some of the bad guys, but what about going after Chase??? And according to this former regulator, William Black, and even me, a former banker, the lenders put the fraud in bank fraud.
    http://www.jasonwerner79.blogspot.com/2012/08/former-prosecutor-rips-usdoj.html

    Thanks,
    Jason

  11. 1ofthemany says:

    oh but they are the “Little People
    ” get it!!! Just like you and I.

  12. Kevin says:

    Obama and his task force ‘special ops’ are so f’n retarded. Do they just have their heads up their assholes or what? You’ve got to be kidding me. Investigate the real perpetrators you dipshit idiots!! Key word hear; ‘prosecute significant financial crimes’

  13. MARGETTA LANGLOIS PRO.SE says:

    YOU’R E ALL RIGHT LET’S MAKE AN EXAMPLE OUT OF THE PEOPLE

    BUT THE QUESTION IS

    DOES THIS BANK / INVESTOR HAVE THE ‘ORIGINAL’ NOTE”? PROBABLY NOT….

    THIS WORLD THE U.S. HAS GONE TO “S-H-I-T”

    I KNOW A “CON” IN FLA. GETS FALSE FRAUD APPRAISSALS OUT OF $ 17,000. SINKHOLE HOMES &

    GETS $ 142,500 IF THAT IS’T CRIMINAL APPLIES FOR S.S.I. NOT DISABLED, WELFARE,

    FOODSTAMPS. & MEDICAID OWNNG 4 HOMES 2 ILLEGALLY FROM PROBATE HE FORGED INS.

    POLICIES, THERE ARE FRAUD-ALERTS ALL OVER HIM…..

    AND THE PROBATE JUDGE HAS THREATENED & INTIMIDATED US FOR TESTIFYING THE

    TRUTH. W/ CIVIL & CRIMINAL CONTEMPTS

    WHERE’S THE JUSTICE CERTAINLY NOT IN THE COURTS,

    HE EMBEZZELED OUT, (2) HOMES, VEHICLES, DOG, EMPTIED BANK ACCT.’S, CREDIT CARD’S

    OVER RUN ,THE JUDGE WON’T LET THE BENEFICIARY BRING THE BANK OFFICAL TO

    TESTIFY,THE NOTARY TO THE FORGED Q.C.DEED, INS. POLICIES STOLEN & FORGED.

    WROTE CHECKS ON HIS DEAD MOTHER’S BANK ACCT,’S , SOLD (2) HO– USES OUT OF PROBATE

    FOR $ 80,000. ON A GOV LOAN TO HIS GIRLFRIEND,MAKING NO PAYMENTS IN DEFAULT,

    ONLY TO GET THE FAST-CASH OUT OF THE “PROBATE- ASSET’ TO SWINDLE OTHER BENEFICIARY

    OFF & THEN THE EXECUTORS OF THE ESTATE TOOK ASSETS FOR THEMSELVES…

    JUDGES DO NOTHING, THE ESTATE WAS WORTH $ 500,000.-$ 700,000.+

    TO AVOID HIGH TAXES TO I.R.S. & THE GOV. PUTS THOSE POOR PEOPLE IN JAIL SICKENING

    BUILT A HOME IN TENN. NOW HOME HIDDEN IN THE MAN’S NAME HE BOUGHT LAND FROM NOW

    HAS BOAAT SELL ILLEGAL FRAUD NON-EXISTING BUSINESSES THAT DO NO EXIST, &

    HAS THE BALLS HE FORGED HIS DEAD MOTHER’S NAAME ON CREDIT CARD ON FRAUD ON A DEAD

    PERSON. CREDIT CARD FRAUD ON OTHER PEOPLE CARDS & “NO” BODY PASCO SHERIFF’S, PAASCO

    PROBATE COURT WON’T DO ANYTHING TO RONALD WYLLINS.IN P.R.,FLA. 34668

    THIS GUY IS A “REAL” CON….& JUDGES ARE COVERING UP

    HE GAVE 2 (BOGUS) WARRANTY-DEEDS ON 2 SALES.

    W/LIENS…..

  14. Speak out says:

    It just cannot be possible!

    This is a joke, right?

  15. Sarah says:

    A Bank victimized by homeowners? JP Morgan Chase even? The very idea sounds perverse. Which it is,
    but examples need to be set. Details aren’t provided here, but did the Bank even verify any of the information before handing over [other people’s] money?
    What is chilling, is that widespread robo signing, and fraud DID occur, yet a multitude of agencies and police are brought into an investigation of a homeowner. No TBTF Bankster CEO has or ever will be staring down a possibility of years in jail. Launder drug money? No big deal. Origination fraud, appraisal fraud, foreclosure fraud? No big deal. Get massive bailouts and subsidies from the taxpayers? No problem, there’s more where that came from. LIBOR? Victimless crime. John Corzine? Teflon.
    Lie on a loan app? Massive investigation with the full force and fury of the Bureau, featuring helicopters and leg irons.
    JP Morgan should have checked to see whether the loan applicant was legit, but we know they’ve famously skipped that step.

  16. Mario Kenny says:

    The small fries are going to jail as the big sharks continue to lunch on the sardines for whom the sharks have acquired a keen taste and with certain impunity.

  17. Joi says:

    Is it me, or am I crazy. Is this story any different from what the bank and bankers are doing? Yet these people get indicted and not the banks! This is no worse that what the banks and bankers been doing to millions of people….STEALING HOMES.

    Something is seriously wrong here.

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